This research project has the following two objectives:
1. Produce indices of policy-related economic uncertainty in Japan by policy area. The areas include social security, the pension program, the healthcare insurance system, the nursing care insurance program, taxes, government spending, the labor market system, environmental regulation, consumer protection regulation, and financial regulation.
2. Examine the relationship between policy uncertainty, business decisions and firm productivity across policy categories by using these newly created indices and firm-level data.
We will derive some policy implications for firm productivity in Japan from our empirical results.
July 1, 2019 - June 30, 2021